Kansas City man admits to securities fraud

By Scott Files

Published on May 03, 2006

Michael P. Schaefer, 57, of Kansas City pled guilty to 19 counts of securities fraud, 19 counts of selling unregistered securities and an additional 12 counts of selling securities without being registered as a securities broker. He also pled no contest to 10 felony theft charges.

Mr. Schaefer was initially charged in December of 2004 with additional felony counts, but, prosecutors agreed to dismiss a total of 28 of the charges as part of a plea agreement. At the next round of proceedings, the state will seek a 10 year sentence for the defendant, however, his defense team will be given the opportunity to argue for probation or a lesser sentence.

The charges allege that Mr. Schaefer took in almost $10 million from about 150 investors.

The State's attorney has retained an option to pursue a prison term of up to 20 years if Mr. Schaefer does not show up for his sentencing on June 30th. Prosecutors have stated that they believe that Mr. Schaefer is a potential flight risk.

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